TLDR
- Cathie Wood’s ARK Invest acquired 97,597 Baidu (BIDU) shares worth $12.21 million following a 5.7% post-earnings decline
- Despite exceeding Q4 earnings estimates, Baidu’s revenue fell 4% year-over-year due to advertising sector challenges
- ARK divested 25,175 BWX Technologies (BWXT) shares valued at $5.22 million as part of ongoing position reduction
- Additional sales included positions in PagerDuty (PD), Beam Therapeutics (BEAM), Iridium (IRDM), Salesforce (CRM), and Butterfly Network (BFLY)
- AI-focused business segments contributed $1.61 billion to Baidu’s Q4 revenue, accounting for 43% of the total
Cathie Wood’s investment firm ARK Invest executed a notable transaction on Thursday, February 26, accumulating a significant position in Chinese technology giant Baidu following a sharp decline in its share price.
The firm acquired 97,597 shares of Baidu (NASDAQ: BIDU) distributed across its ARKK, ARKQ, and ARKW exchange-traded funds. The aggregate investment totaled $12.21 million.
This strategic purchase followed a 5.7% decline in Baidu’s stock price after the company released its Q4 FY2025 financial results. While Baidu’s performance exceeded analyst expectations for both revenue and earnings, the market responded negatively to a 4% year-over-year contraction in overall revenue.
The revenue shortfall stemmed primarily from continued weakness in Baidu’s traditional advertising segment, which has faced sustained pressure. These declines overshadowed positive performance in other business areas.
ARK’s investment suggests confidence beyond the advertising headwinds. CEO Robin Li highlighted robust expansion in AI cloud infrastructure and increasing enterprise adoption of Baidu’s artificial intelligence solutions.
During the fourth quarter, Baidu’s AI-driven business units — encompassing cloud infrastructure, AI applications, and autonomous taxi services — generated $1.61 billion in revenue. This represented 43% of the company’s total quarterly revenue.
ARK Trims BWX Technologies and PagerDuty
Regarding divestments, ARK’s most substantial sale involved 25,175 shares of nuclear components manufacturer BWX Technologies (NYSE: BWXT), totaling $5.22 million. This transaction extends ARK’s recent pattern of reducing its BWXT holdings throughout the week.
The firm also liquidated 307,843 shares of cloud infrastructure software provider PagerDuty (NYSE: PD), valued at approximately $2.18 million. Interestingly, PD shares appreciated 5% on the same trading day.
This PagerDuty divestment is consistent with ARK’s broader strategy of decreasing exposure to this holding over recent weeks.
Additional sales encompassed positions in Beam Therapeutics (NASDAQ: BEAM), Iridium Communications (NASDAQ: IRDM), Salesforce (NYSE: CRM), Pinterest (NYSE: PINS), and Butterfly Network (NYSE: BFLY).
Biotech Buys and Other Moves
ARK additionally acquired 482,407 shares of biotechnology company ATAI Life Sciences (NASDAQ: ATAI), representing approximately $1.79 million through its ARKG fund.
ATAI shares declined 14.1% during the same session, despite the company announcing favorable Phase IIa clinical trial results for EMP-01, its experimental treatment for social anxiety disorder.
Market analysts characterized the trial outcomes as scientifically promising but insufficient to support ATAI’s previous valuation surge.
ARK further accumulated 4,836 shares of Amazon (NASDAQ: AMZN) for $814,966 and 25,382 shares of Pure Storage (NYSE: PSTG) worth $1.87 million.
According to TipRanks, BIDU maintains a Strong Buy consensus rating derived from seven Buy recommendations and two Hold ratings. The average analyst price target of $180.63 suggests potential upside of 44.3% from current trading levels.
BIDU shares have appreciated 41.8% over the trailing twelve-month period.
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